this post was submitted on 31 Jan 2025
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Explain Like I'm Five
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Are you getting rid of income tax, or changing the income tax system to a flat rate?
Because those are two different things.
I think they mean getting rid of income tax, and putting a flat (higher) rate on sales tax.
Mississippi is planning on doing something like that soon.
I think "don't do what Mississippi does" pretty much answers this question.
Washington state has also never had an income tax and uses sales tax but makes many essential items tax free to try and be less of a burden on the poor
Yeah and it's stupid and regressive as fuck.
It can be less regressive depending how it’s done. Poor people spend much larger percentages of their income on essentials like food, clothing (non luxury), and rent which can all be made tax free. It can then actually tax people who do things like take out massive loans to cover their expenses while not technically earning an income.